Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Phillips 66 (NYSE:PSX)

This company was transferred to the archive: financial data is no longer updated!

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Phillips 66, FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to Phillips 66 3,076  5,595  5,106  1,555  4,227 
Net income attributable to noncontrolling interests 301  278  142  89  53 
Net noncash charges 2,261  1,973  (1,662) 818  1,654 
Working capital adjustments (830) (273) 62  501  (221)
Net cash provided by operating activities 4,808  7,573  3,648  2,963  5,713 
Cash payments, interest, net of tax1 340  369  299  233  195 
Interest capitalized, net of tax2 61  13  11  61  75 
Capital expenditures and investments (3,873) (2,639) (1,832) (2,844) (5,764)
Free cash flow to the firm (FCFF) 1,336  5,317  2,126  413  219 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Phillips 66’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Phillips 66’s FCFF increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Interest Paid, Net of Tax

Phillips 66, interest paid, net of tax calculation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR1 20.20% 20.60% 28.90% 25.00% 29.20%
Interest Paid, Net of Tax
Cash payments, interest, before tax 426  465  421  311  275 
Less: Cash payments, interest, tax2 86  96  122  78  80 
Cash payments, interest, net of tax 340  369  299  233  195 
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax 77  17  15  81  106 
Less: Interest capitalized, tax3 16  4  4  20  31 
Interest capitalized, net of tax 61  13  11  61  75 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

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2 2019 Calculation
Cash payments, interest, tax = Cash payments, interest × EITR
= 426 × 20.20% = 86

3 2019 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 77 × 20.20% = 16

Enterprise Value to FCFF Ratio, Current

Phillips 66, current EV/FCFF calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 32,913 
Free cash flow to the firm (FCFF) 1,336 
Valuation Ratio
EV/FCFF 24.63
Benchmarks
EV/FCFF, Competitors1
Chevron Corp. 11.16
Exxon Mobil Corp. 30.46
EV/FCFF, Sector
Oil & Gas Producers 17.04

Based on: 10-K (filing date: 2020-02-21).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Enterprise Value to FCFF Ratio, Historical

Phillips 66, historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 51,629  54,931  55,363  49,493  48,895 
Free cash flow to the firm (FCFF)2 1,336  5,317  2,126  413  219 
Valuation Ratio
EV/FCFF3 38.63 10.33 26.04 119.84 223.52
Benchmarks
EV/FCFF, Competitors4
Chevron Corp. 16.67 14.42 31.47 — —
Exxon Mobil Corp. 44.38 22.20 23.79 57.49 89.49
EV/FCFF, Sector
Oil & Gas Producers 25.11 18.22 25.65 230.06 —

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

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2 See details »

3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 51,629 ÷ 1,336 = 38.63

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Phillips 66’s EV/FCFF ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.